CIRCULAR

GUIDING THE IMPLEMENTATION OF SAVING 10% OF THE 2008 STATE BUDGET REGULAR EXPENDITURE TO CURB INFLATION

Pursuant to Decree No.77/2003/ND-CP dated July 01, 2003 of the Government defining the functions, tasks, powers and organizational structure of the Finance Ministry;
Pursuant to Decision No.1569/QD-TTg dated November 19, 2007 of the Prime Minister on the assignment of 2008 State budget estimation;
Pursuant to Decision No.390/QD-TTg dated April 17, 2008 of the Prime Minister on administering basic construction investment plan and the 2008 State budget target for curbing inflation;
The Ministry of Finance guides the implementation of assignment and saving 10% of the 2008 State budget regular expenditure to curb inflation as follows:

A. GENERAL PROVISIONS:

1. Subjects of savings:

The ministries, ministerial-level agencies, Governmental agencies, other central agencies, People's Committees at all levels of localities and agencies and units assigned the cost estimation of the 2008 State budget regular expenditure by the competent authorities.

2. Scope of savings:

- Saving 10% of the estimation of the 2008 State budget regular expenditure which has been assigned at the beginning of the year (hereinafter referred to as saving 10% of regular expenditure), excluding: The estimation for expenditures of the national objective programs, program 135 and tasks of price subsidies, freight subsidies; some mandatory spending amounts under the current regime, policy which have been defined in clause 1, Article 1 of Decision No.390/QD-TTg dated April 17, 2008 of the Prime Minister.

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3. Use of saving budget:

The saving budget of each level shall be kept by such level to supplement the increase of state budget provision to centralize the handling of spending tasks to ensure social security, prevention, combat and recovery from natural disasters, epidemics; handle important, urgent tasks arising out of the estimated budge and reduce budget deficit (for the savings of the central budget).

B. SPECIFIC PROVISIONS

1. Principles of determining to allocate 10% saving targets of regular expenditure:

The 2008 estimated expenditures of state budget for calculating 10% savings under the provisions of this Circular is the unused remaining of the 2008 estimated regular expenditure allocated by the competent authority, subtracting some mandatory spendings according to current regimes and policies.

For simplicity in the determination and assignment of the 10% saving targets of regular expenditure to agencies, subordinate units, low-level units, the district and cummune-level budgets, the Ministry of Finance guides the averaged calculation by deviding the estimated regular expenditure (after subtracting the expenses unable to save) into 12 parts (corresponding to 12 months of the year) and then multipling by 8 (corresponding to 8 months at the end of the year), then calculating for 10% saving.

The formula as follows:

10% savings of regular expenditure in 2008= {

A – (B+C+D+E+F)

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12

In which:

A means the 2008 estimated regular expenditure assigned by competent authorities (excluding the estimated expenditure for national objective programs, program 135 and expenditure for price and freight subsidies).

B means the total spent salary, salary-nature allowances, wages and other expenditure for people according to the regime.

C means 10% savings of regular expenditure for creating source of salary reform upon the plan at the beginning year.

D means the total expenditure for yearly fees, correspondent capital, contributions to international organizations (if any).

E means total expenses on the Vietnam representative offices abroad (if any).

F means the total of other specific expenses unable to be saved (if any).

2. Assignment method of 10% saving target of regular expenditure:

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- Ministers, Heads of ministerial-level agencies, Governmental agencies, other central agencies determine the number of 10% saving of regular expenditure according to the principle referred to in clause 1, item B of this Circular and assign the detail saving target, corresponding to each sector to agencies, subordinate estimation units, lower-level units to implement.

- Presidents of People's Committees of provinces and cities under central government determine the number of 10% saving of regular expenditure according to the principle referred to in clause 1, item B of this Circular and assign the detail 10% saving target of regular expenditure, corresponding to each sector to agencies, subordinate units, and to the district-level budget; to direct the district-level People's Committees to assign 10% saving target of regular expenditure to subordinate agencies, units, and to the commune-level budget on the basis of budget estimation which have been approved by the People's Councils and assigned by People's Committee.

- The decisions to assign 10% saving target of the competent authorities are sent to the using-budget units and to the State Treasury where the transactions are conducted for controlling spending.

3. The work contents requesting the budget beneficiaries to implement saving:

In order to ensure the fulfilling of professional tasks assigned at the beginning of the year in the condition of implementing 10% saving of regular expenditure according to the decision of the Prime Minister and the provisions of this Circular, requesting the ministries, the ministerial-level agencies, governmental agencies, other central agencies, People's Committees at all levels to direct the subordinate agencies and units, lower-level budgets to review, revise regular expenditure tasks which have been assigned at the beginning of the year, in which focus mainly on implementing the following tasks:

- To temporarily stop purchasing cars, means of transportation and other property of great value; overhaul of office buildings.

- To minimize expenses for conferences, seminars, festivals, annual meeting, preliminary meeting, medals receipt and trophies, the anniversary of the establishment,... and the mission delegation (domestic and abroad) using the state budget.

- To save maximum in the use of electricity, water, telephone, stationery, petrol (minimum 10% savings).

- To stop the spendings for other tasks which are not really urgent or with unpractical content.

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State Treasury based on decisions allocating 10% savings target of state budget regular expenditure in 2008 of the Ministers, Heads of ministerial-level agencies, Governmental agencies, other central agencies, Presidents of People's Committees at all local levels shall record lower estimated budget of each agency or unit; shall control regular expenditures of state budget in 2008 according to the current law regulations.

The financial management agencies of ministries, ministerial-level agencies, governmental agencies, other central agencies and local authorities at all levels guide, inspect and control the implementation of regular expenditure savings of agencies and units under their management.

5. Use of 10% savings of regular expenditure:

- For 10% savings of regular expenditure of the ministries, ministerial-level agencies, Governmental agencies, other central agencies: Ministry of Finance shall synthesize and report to the Government for submission to National Assembly Standing Committee to use such saving amount to supplement the central budget provision, prioritize for the spending tasks for social security, prevention, combat and recovery from natural disasters, epidemics; handle important, urgent tasks arising out of the estimated budget; the rest is used for reducing state budget deficit.

- For 10% savings of regular expenditure of local units and agencies: Finance Agencies at each budget level are responsible for presiding over, synthesizing and reporting to the People's Committees for submitting to the People's Councils of the same level (particularly at the commune level, only agreement with the president and vice president of commune-level People's Council) to supplement its level’s budget provision, prioritize for the spending tasks for social security, prevention, combat and recovery from natural disasters, epidemics; handle important, urgent tasks arising out of the estimated budget.

C. IMPLEMENTATION:

1. This Circular takes effect 15 days after its publication in Official Gazette.

2. The Ministers, heads of ministerial-level agencies, Governmental agencies, other central agencies and the presidents of People's Committees of provinces and cities directly under the Central Government shall assign savings targets to the subordinate agencies, units, lower-level budgets; take responsibility for implementation and reporting to the Ministry of Finance the results of detail assigning 10% savings of regular expenditure for each expenditure sector, results of reviewing and re-adjusting regular expenditures tasks according to each content stipulated at point 3, Item B of this Circular. Deadline for sending reports to the Ministry of Finance is no later than May 20, 2008 for timely synthesis and report to the Prime Minister before May 30, 2008.

3. The agencies, units assigned for the whole package to stabilize budget under sole discretion of the Prime Minister (State Bank, Social Insurance, Vietnam Television) shall assign 10% savings target of regular expenditure to the subordinate agencies and units under the guidance at the points 1, 3, Item B of this Circular; report results of savings implementation to the Ministry of Finance for synthesis and report to the Prime Minister according to each content stipulated at point 2, Item C of this Circular; and remit to the central budget the saving amount to supplement for the tasks specified in point 5 Item B of this Circular.

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FOR MINISTER
DEPUTY MINISTER




Nguyen Cong Nghiep

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Thông tư 34/2008/TT-BTC triển khai thực hiện tiết kiệm 10% chi thường xuyên ngân sách nhà nước năm 2008 nhằm kiềm chế lạm phát do Bộ Tài chính ban hành